Beachbody shifts to affiliate model, cuts workforce by 33%

October 1, 2024

EL SEGUNDO, Calif. – The Beachbody Company, Inc. (NYSE: BODI), known for its fitness and nutrition products, has announced a strategic shift in its business model, moving away from multi-level marketing (MLM) to a single-level Affiliate Program, set to launch on November 1, 2024. This transition is part of the company’s broader restructuring plan aimed at reducing costs and streamlining operations.

The move from MLM to an Affiliate Program is expected to make the sales process more efficient and rewarding for sellers, according to Executive Chairman Mark Goldston. Goldston highlighted that this change is in response to current market dynamics and consumer preferences, which deem the MLM model outdated. The company anticipates that these changes will significantly improve its revenue break-even point, decreasing from under $430 million to less than $225 million in annual revenue.

CEO and Co-founder Carl Daikeler emphasized the company’s history of evolving in response to market conditions and expressed confidence that the new Affiliate Model would energize their network by simplifying the sales process. This shift is also expected to help the company’s partners and customers achieve better health and fitness outcomes without the complexity of managing a team.

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